The Industrial Internet of Things (IIoT), comprised of smart devices that allow for a highly autonomous manufacturing industry, is set to grow 207 percent within half a decade, according to a new report from analyst firm Juniper Research.
Juniper claims that there will be more than 36.8 billion active IIoT devices by 2025, up from 17.7 billion today.
The report argues that advances in two key fields will propel the IIoT industry forward: 5G and LPWA (Low Power Wide Area).
Private 5G networks will prove highly valuable, the report claims, transmitting large amounts of data in environments with a high density of connections and where significant levels of data are generated. With 5G, large-scale manufacturers will also be able to cut down on operational spend.
According to Juniper, more than 80 percent of global IIoT market value will come from software spend, amounting to $216 billion. Businesses will spend deeply on machine learning-powered tools that can analyze data and identify network vulnerabilities, claims the firm.
“Manufacturers must exercise caution when implementing IoT technology; resisting the temptation to introduce connectivity to all aspects of operations”, said report author Scarlett Woodford.
“Instead, manufacturers must focus on the collection of data on the most valuable areas to drive efficiency gains.”